I am thinking about filing chapter 7, and I was wondering how long - ish it takes before I start over again reestablishing credit and therefore raising my score. I guess I don't even really know what the score will be after filing. Any insight?
2007-09-19 06:21:54 · 6 answers · asked by sometimes 2 in Business & Finance ➔ Credit
In about 2 years, provided you pay all your bills on time, your score should start improving. But bankruptcy will stay on your credit report for 10 years.
2007-09-19 06:31:39 · answer #1 · answered by bdancer222 7 · 1⤊ 2⤋
If your score is already at rock bottom when you file, and you have a reaffirmed debt that you are paying on time, you will see improvement each month after the discharge. Your debt to income ratio instantly improves after your discharge. (Assuming you have an income source -job) I was a bank manager for over 8 years. I have seen scores jump to high 600s or even low 700s within a year. Sounds crazy, but it's true. Your slate is basically clean, so you do not want to be late with a reaffirmed debt. You will also start getting bombarded with credit card offers from the companies that you "screwed". Granted, the rates might not be great. They don't hold grudges. They see dollar signs now that you are debt free.
2015-06-05 11:14:50 · answer #2 · answered by swhmetta 2 · 0⤊ 0⤋
It will take up to 7 years to for collection notice and other negative marks on your credit report to be removed. After which time you can contact the 3 credit reporting bureaus Experian, Equifax, and Transunion to have them removed. You have to be cautious though when dealing with collection agencies because they often times use whatever trickery they can to get their money. There are times when NOT paying off old collections is advisable, especially if it's close to being written off. Beware if you contact the collection agency or make any reference to paying off the account -- they will try to use such communication as justification for changing the initial account date which in effect will make you wait beyond the original 7 years! This is a scam. If this happens to you you can easily contact the 3 agencies and tell them the original date so that they can fix your report.
2007-09-20 20:43:14 · answer #3 · answered by Millionster 3 · 1⤊ 1⤋
7 to 10 years
2007-09-19 08:58:11 · answer #4 · answered by Anonymous · 0⤊ 4⤋
The laws have been changed. It will now take 15 years after declaring bankruptcy and having an absolutely perfect payment history for those 15 years to improve your credit score. Also you cannot "wipe out" debts anymore - you can only delay paying them back. The old system of wiping out debts is forever gone.
2007-09-19 06:38:34 · answer #5 · answered by MrKnowItAll 6 · 0⤊ 7⤋
bdancer is correct.
I was lucky and had a loan with Ford that I reaffirmed on so my score did not really go down that much. Plus I got two credit cards and used them for everyday thing, never exceeded 30% of my credit limit and paid them off in full every month.
After 6-months I bought a new car through Ford with no money down and 3.9% interest, after 18-more months I bought a home with no money down and a 6.5% fixed rate so it can be done.
Now after a total of 7-years, I have a better credit score then I did before my bankruptcy.
2007-09-19 06:47:10 · answer #6 · answered by ? 7 · 5⤊ 21⤋